Greenland gives the go-ahead for mining of radioactive minerals

Updated
October 25, 2013 20:12:00

Greenland's parliament has given the green-light for the mining of uranium and rare earths. It ends a decades-long 'zero tolerance' policy on mining for radioactive materials. The vote is expected to attract Australian and Chinese investors to the island.

Greenland's parliament has today narrowly voted, 15 to 14, to end its ban on uranium mining.

During the debate Greenland's prime minister said the country, with its unemployment and cost of living increases, can't afford to continue its zero tolerance policy.

John Mair is the executive director of Greenland Minerals and Energy.

JOHN MAIR: The uranium debate has been an ideological debate I think more than anything else.

RACHAEL BROWN: Mr Mair's Australian-owned company stands to be one of the biggest winners, now that the former Cold War ally of the West is opening up its minefields.

JOHN MAIR: It's a big step for Greenland and it places Greenland on a path toward uranium producer status.

RACHAEL BROWN: The vote will also allow for the mining of rare earths, currently mostly extracted by China for products like wind turbines, hybrid cars and smart phones.

One rare earth deposit being explored by Greenland Minerals and Energy could be one of the largest outside China.

JOHN MAIR: The Kvanefjeld project is one of the world's most significant occurrences of rare earth, but they've always been tied up with uranium such that they're... you know, the potential to exploit them has been highly uncertain.

RACHAEL BROWN: Mr Mair says the field could be in operation for between 50 to100 years and could help the autonomous province wean itself off grants from Denmark.

JOHN MAIR: A real recognition has grown in Greenland that in order to be able to sustain this path to greater autonomy, they need to be economically viable and the only real path to that is through the development of natural resources and specifically in a shorter term, mining minerals.

RACHAEL BROWN: Dave Sweeney from the Australian Conservation Foundation says mining poses big problems for the Arctic and its delicate ecology.

DAVE SWEENEY: Everywhere where uranium has been mined has seen a legacy of contamination. Every uranium mine site in Australia and elsewhere has seen contaminated ground and surface water, has seen leaks and spills, has seen the creation of dangerous, carcinogenic, long-lived contaminates.

High volumes of long-lived radioactive waste are a direct and causal result of uranium mining. And we have seen that here.

RACHAEL BROWN: Mr Sweeny spoke to PM from an Adelaide symposium on uranium mining, where news of the Greenland vote was just filtering in.

He says Australia's Indigenous people know all too well about the impacts of uranium mining, and a delegation will be writing to the Danish government, urging it to intervene.

DAVE SWEENEY: This was a very close vote, there was one vote in it. It was a motorcycle accident away from a different result. So we need to ensure the highest levels of scrutiny.

We also need to look at the fact that since Fukushima - a continuing nuclear crisis directly fuelled by Australian uranium - since Fukushima, the commodity price or uranium has fallen 50 per cent. So companies are now eager to cut costs and cutting costs for a mining company means cutting corners.

RACHAEL BROWN: It's unknown whether the uranium decision will need to be approved by the Danish parliament.

If mining permits are approved, the fields could be open for business in the latter part of 2017.